Study: Employers should use surprise bonuses and penalties to mo - FOX5 Vegas - KVVU

Study: Employers should use surprise bonuses and penalties to motivate workers

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(Source: Mike Doria/FOX5) (Source: Mike Doria/FOX5)

A new working paper from Harvard Business School shows that employers use “tournament-based rewards systems” all the time which give bonuses or props to workers who meet or exceed goals.  But there’s just one problem. It causes the losers or the underperformers to be even less productive. 

The working study also finds that employees who take part in these contests sometimes feel they’re unfair, pit employees against one another, or cause peer pressure forcing employees to work harder on behalf of the entire organization. 

Despite the catchy headline, professors in the school suggest that employers use the “good job” and pat on the back approach versus handing out cash or gift cards. 

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